The key to digital investment is a human mindset

November 04, 2024 | 15:52
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Digital transformation helps businesses remain competitive in a logistics market challenged by unpredictable economic and political shifts worldwide. Eric Herding, managing director of DSV Air & Sea Vietnam spoke with VIR’s Hong Nam about how logistics companies should make digital and green transformation a priority, guided by clear goals and human communication.

What do you consider the most important success factor for digitalisation in logistics?

Two essential components for successful digitalisation are processes that yield desired outcomes, and a strong emphasis on data quality and timeliness. We have established a dedicated team focused on ensuring the quality and promptness of our data, supported by our business implementation team and cross-functional project teams that adopt a holistic view of our processes.

For businesses, it is imperative to have clear objectives and seamless human communication between technology and business units. Moreover, digital transformation must go hand in hand with process optimisation. Finally, building an accurate and transparent data warehouse is crucial. If the data is flawed, any analysis or recommendations generated by AI can lead to disastrous consequences. By prioritising these elements, organisations can navigate the complexities of digitalisation effectively.

The key to digital investment is a human mindset
Eric Herding, managing director of DSV Air & Sea Vietnam

Could you share some of the latest digital trends that DSV Vietnam is adopting?

Several digital solutions have significantly enhanced the convenience for many businesses, facilitating research and information retrieval, improving management capabilities, and boosting work efficiency. Digital transformation has touched upon various aspects of business operations. It’s essential to fully understand the different areas where digitalisation provides benefits to our customers, employees, and the organisation as a whole.

We offer a suite of online tools designed to capture and organise relevant data, providing customers with a convenient and efficient means of searching for and accessing information. This data is presented in intuitive dashboards, enabling our customers, customer service teams, account managers, and management to gain insights that support better decision-making and effective solutions.

Our digital solutions range from our comprehensive applications such as tracking and report application myDSV, to customised options such as electronic data interchange, API, and purchase order management solutions, each tailored to meet specific needs and enhance overall operational effectiveness.

How central is sustainability to the company’s strategy?

DSV’s core strategy centres on asset-light operations, a model that has effectively positioned us among the world’s foremost logistics companies. This strategic approach allows us to maximise efficiency while minimising fixed costs, enabling us to respond swiftly to the ever-changing demands of the logistics landscape.

To support our commitment to sustainability, we have established dedicated investment funds focused on developing sustainable facilities, enhancing our material handling capabilities, and investing in eco-friendly vehicles. As part of our green transformation initiatives, we are actively pursuing opportunities to apply for funding that allows us to collaborate with our partners in implementing solar energy solutions for our logistics facilities. Additionally, we are investing in electric trucks and delivery vehicles to address pressing energy challenges and reduce our overall carbon footprint.

We firmly believe that our most valuable asset is our people. Therefore, our primary investments are directed towards nurturing and developing our workforce, ensuring they are equipped with the necessary skills and knowledge to thrive in a competitive environment.

Following this, we strategically invest in infrastructure and equipment to deliver exceptional services to our customers. This dual focus not only enhances our operational efficiency but also reinforces our commitment to sustainability and innovation within the logistics industry.

Costs and competition head logistics advancement issues Costs and competition head logistics advancement issues

Accelerating transport infrastructure connections and investing in the development of logistics centres is the key to helping reduce logistics costs and increasing competitiveness for businesses.

Green is new buzzword for logistics arena Green is new buzzword for logistics arena

As sustainable development becomes a mandate to operate in the logistics industry, companies are stepping up their efforts to green their operations.

By Hồng Nam

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